Financial Literacy

Before taxes and deductions, Mrs. Allen's pay was $1,600. This is considered her - (a)  

• net income

• gross income

• deposits

• income tax

Investing your money means

• giving it away for free

• putting your money into financial assets with the hope it will earn you more money

• burying it in your backyard

• spending it all on luxury items

House payment, rent, groceriers, and car payment are all examples of

• income

• needs

• deductions

• expenses

Organize these options into the right categories

Groups:

(a) Good decision

,

(b) Bad decision

• borrowing money from the bank

• writing a check when you do not have money in your account

• borrowing money to buy a house

• having a plan for repayment of borrowed money

• taking out a student loan to pay for college classes

• using the atm machine when you do not have money in the account

• borrowing money on your credit card

• only making the minimum balance on your credit card

• using your student loan to go on spring break vacation

A plan for using money is called a ___________

• loan

• savings

• income

• budget

Giving your cousin your apple in exchange for his banana is an example of

• bartering

• stealing

• interest

• saving

The money you earn is called

• expenses

• donations

• income

• savings

What is the primary purpose of a budget in personal finance?

• To track expenses and income

• To increase spending

• To avoid paying taxes

• To eliminate all debts

Which of the following is considered a liability?

• A car loan

• A savings account

• A retirement fund

• A stock investment

What does it mean to diversify your investments?

• Investing all money in one stock

• Spreading investments across various assets

• Keeping all money in a savings account

• Investing only in real estate